TDS for Consultants paid below 2.5 L PA

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  1. Sunitha_bhat

    Sunitha_bhat New Member

    Hi,
    I am a Consultant who gets paid less than 2.5 L PA, but my company is deducting 10% TDS as they say that i will come under the scope of 194J . What is the tax bracket for consultants. what is the minimum limit. Please let me know. I donot have any other source of income.

    Regards
    Sunitha
     
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    As you are not on the payrolls of the company and working as an independent professional consultant, TDS under Section 194J is liable to be deducted on all payments made to you by any company.

    TDS @ 10% is to be deducted in case the total payment to be made during the year exceeds Rs. 20,000. Kindly refer: http://www.charteredclub.com/section-194j/

    However, in case the TDS deducted is more than your actual income tax liability computed as per the slab rates, you can claim TDS Refund. Refer: http://www.charteredclub.com/tds-refund/

    Alternatively, you can also submit an application to the income tax officer for non-deduction of TDS. Once the same is approved by the officer, you can submit a letter to your company and they will not deduct any TDS. Kindly refer: http://www.charteredclub.com/income-tax-form-13-for-applying-for-nillower-deduction-of-tds/
     
  3. Sunitha_bhat

    Sunitha_bhat New Member

    Dear Sir,
    Thank you for the reply.
    No I am not on the company payrolls, I work as an independent consultant and do not have any other source of income and I get paid Rs 20,000 a month as a service fee. Please advise.

    Regards
    Sunitha
     
  4. gaurav_kumar

    gaurav_kumar Well-Known Member

    So either you can get your TDS deducted and then claim it back as a refund.

    Or else, you can write an application to the income tax officer for non-deduction of TDS.
     
  5. Sunitha_bhat

    Sunitha_bhat New Member

    Thank you for the reply.
    Regards
    Sunitha
     
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